The US Dollar traded lower against the Swiss Franc on Thursday, pressured by concerns over escalating US-Iran tensions and a nearly 10% jump in oil prices. The USD/CHF pair slipped to around 0.8050, retreating from Wednesday’s rejection at 0.8100.
The Swiss Franc found support as the Dollar Index dipped below 101.00, testing weekly lows. Market sentiment turned bearish toward the greenback after the Federal Reserve’s minutes signaled limited commitment to combating inflation.
Geopolitical risk failed to buoy the safe-haven Dollar as reciprocal US-Iran strikes raised doubts about a diplomatic resolution. Soaring oil prices added to upward pressure on inflation, yet hopes for renewed negotiations kept USD buyers at bay.
Technical Analysis: In a bearish correction from June’s highs
The USD/CHF formed a lower high at 0.8108, confirming the ongoing corrective phase from June peaks. Four-hour momentum indicators are bearish: the RSI (14) stands at 46.1 and MACD is trending toward the zero line, signaling diminishing upside pressure.
Bullish correction attempts may find support above July 7 lows near 0.8045, with a more significant floor at 0.8000 – the confluence of July 2-3 lows and the 38.6% Fibonacci retracement of June’s rally.
Key resistance remains clustered between 0.8110-0.8120. A sustained break above this range would signal the end of the pullback and reopen prospects for the yearly high at 0.8139, reached June 24.
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